Environmental Power Corporation (EPGRQ)

[Golden Cross]

Pacific Gas and Electric Company and Microgy, Inc. To Deliver Renewable Natural Gas To California Market
Tuesday July 11, 8:00 am ET
Cow Manure and Other Wastes to Generate Renewable Natural Gas


SAN FRANCISCO and PORTSMOUTH, N.H., July 11 /PRNewswire-FirstCall/ -- Pacific Gas and Electric Company ("PG&E") and Microgy, Inc. ("Microgy") today announced an agreement that allows Microgy to utilize PG&E's extensive natural gas transmission network to distribute renewable natural gas to markets in California and the West.
ADVERTISEMENT


Microgy, a subsidiary of Environmental Power Corporation, plans to generate renewable natural gas from dairy and other wastes using its proprietary biogas production technology. Under the terms of the agreement, PG&E will work with Microgy to interconnect these facilities with PG&E's extensive network of natural gas pipelines.

As these state-of-the-art, gas-generating facilities are constructed at farms in the central valley, California will enjoy a reliable supply of renewable, environmentally friendly gas at market-competitive prices.

"California is the largest dairy producer and the largest energy consumer in the United States. This interconnection agreement will provide California with access to a new gas supply from our projects, said Kam Tejwani, CEO, Environmental Power Corporation. Our projects will also provide additional economic benefits to the dairies that host these projects," Tejwani added. "The opportunity for the central valley dairy community to participate in Microgy's project development efforts represents a great opportunity to help California meet the state's growing energy demand in an environmentally effective manner."

"California potentially stands to gain a significant new supply for its natural gas customers," said Bob Howard, PG&E's vice president, gas transmission and distribution. "This agreement ensures the necessary infrastructure is in place to deliver this renewable natural gas to the California marketplace, benefiting customers."

About Environmental Power

Environmental Power Corporation (Amex: EPG - News) is a developer, owner, and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, holds an exclusive license in North America for the development and deployment of a proprietary biogas production technology. Its facilities transform manure and food industry waste into methane-rich biogas that can be used to generate electricity or thermal energy, or refined to pipeline-grade methane for sale as a commodity.

About Pacific Gas and Electric Company

PG&E is one of the largest utilities in the United States, with 5 million electric customers and 4.1 million natural gas customers. The company, a subsidiary of PG&E Corporation, serves approximately 15 million people throughout a 70,000 square mile service area in northern and central California. PG&E operates 123,054 circuit miles of electric distribution lines; 18,610 circuit miles of interconnected transmission lines; 40,123 miles of natural gas distribution pipelines; and, 6,136 miles of transportation pipelines.


For more information about Pacific Gas and Electric Company, please visit
http://www.pge.com

For more information about Environmental Power Corporation, please visit
http://www.environmentalpower.com